Economic theory of rent - Курсовая работа

Plekhanov Russian university of economics International business school Coursework in microeconomics Economic theory of rent Student: Polozhay A. Group: 510 Supervisor: Prof. Gromiko V. Moscow 2014 Introduction Wherever the forces of nature can be monopolized and provide additional profit to industrialist which uses them - whether it is a waterfall, or a rich mine , rich in fish water, or a well-located place for building - a person recognized by virtue of his title to a piece of land is the owner of these natural objects , catches from functioning capital this extra profit in the form of rent. Economists define the essence of rent in different ways. Some of them see rent as one of the types of income to property, owners payment for the use of natural resources. Others consider the rent as regular income from capital or land obtained by their owners without business activities. Rent is determined and as a special kind of relatively stable income not directly related to entrepreneurial activity. The analysis of rent formation allows to find out the sources of income for these two subjects of the leases, it allows to reveal the influence of natural factors and the legal forms of ownership on the mechanism of emergence of rent. Determination of rent is inextricably linked with the concept of land. Externally annuity is a fee for use of the land , which it receives from the owner of the tenant. It is Obviously that this payment is the part of the products cost recieved by an enterpreneur. And its nature, its sources and circumstances of rent formation shows theoretical analysis. First of all, it involves the identification of two main circumstances that determine its appearance: firstly , pricing characteristics and features of agricultural products, in which the natural resource has a decisive influence on productivity, secondly, the specific of achivement in this industry windfall profits and reasons for their stable reproduction. These circumstances are generated by the following features of inherent natural factors of production : 1 ) land and many other natural resources are not readily reproducible factors of labor, like the industrial tools and materials; 2) The limit of agricultural land in general, and land of the best and average quality determines the miserable elasticity of land supply. But should also be borne in mind that the term rent has two meanings: legal and economic. In jurisprudence rent is an independent legal relationship concerning the direct relationship between the subjects of the rent contract, It is not associated with the rental property. Same economic relationship between the recipient and the payer of rent is directly related to the use of credits or renting property. In this coursework I make a review of land theories, different types of rent, land tax with it problems and try to consider some solutions for them. 1. Meaning of rent in different economic theories rent tax land russian From the point of view of the Marxist economic theory - rent is a converted form of surplus value , along with profit, wages and interest rates. Marx wrote: Whatever the specific form of rent is, all of them have in common the fact that rent-seeking is an economic form in which landed property is realized, and that the land rent, in its turn, assumes ownership of land ... 1. On the surface of the phenomenon, rent acts as a payment for land that gives the impression as if the earth itself generates this rent. However, the labor theory of value denies it, as the cost can only be created by living labor. Source of rent is unpaid surplus labor of hired workers in agriculture. This part of the surplus value, which is obtained by entrepreneurs - tenants of land , paid their landowners. In the interpretation of the theory of factors of production and the marginal productivity theory rent is the reward that gets the owner of natural resources, particularly land, in accordance with the marginal productivity of these factors. The essence of one of the interpretations is that the rent is not an independent form of income, but a loan interest on the capital that is embedded in land. In accordance with the theory of the Physiocrats - rent is a pure product of nature, the only income that really gets society. There is another interpretation that considers unfair parasitic rent income. In the United States criticized of the rent payments took the form of a single tax movement , which has received considerable support in the late XIX century. It was generated by the acclaimed book of Henry George , Progress and Poverty . George believed that the existence of rent is not fair , and that this income should receive society as a whole , and not the owners of the land. Therefore, he proposed to impose ground rent full (100%) and use tax for public purposes , and cancel all other taxes. 1.1 Modern theory of rent According to many views of economists, the Ricardian theory of rent is too closely related to land. This create